A HOTEL boss is set to lose thousands of pounds after bank managers bowed to pressure and cancelled their Christmas party.

Up to 240 workers from the Royal Bank of Scotland’s offices in Birmingham were due to attend a festive bash at Nailcote Hall in Berkswell, near Coventry.

But after comments by a Birmingham politician bosses have called off the event 12 days before it was due to take place on December 13.

Hotel owner Rick Cressman hit out at RBS – subject of a multi-billion pound Government bail-out – for breaking its contract and MP Gisela Stuart for criticising‘extravagant spending’.

He said: “I am thoroughly annoyed. The net result of MP Stuart’s comments are that the Christmas party for RBS staff has been cancelled.

“This was quite a normal Christmas party, not a lavish affair as it was described. What is so abnormal about £49.50 which the staff had agreed to contribute to?

“No Champagne had been ordered by RBS, just house wine and hotel rooms had not been booked by the company.

"Individuals had the option to book their own rooms at a special rate.”

Nailcote Hall – a 17th century property with 40 bedrooms, leisure club, conference facilities and nine-hole golf course – was told on Monday that the event would not go ahead.

The bank will lose the deposit handed to the venue and face a compensation claim for damages due to termination of the contract.

RBS confirmed that managers cancelled the Christmas party following adverse publicity. The bank dismissed claims bosses had agreed to spend thousands of pounds, saying the event would raise money for charity.

MP Stuart said: “It was wrong for Royal Bank of Scotland to have done this in the first place.”